Dictionary of Banking Terms: intermediate targets
intermediate targets
monetary targets, either monetary growth or interest rates, that the Federal Reserve sets as objectives of its monetary policy. In recent years, the Fed has shifted its focus from controlling the rise and fall of the Fed Funds rate to emphasis on monetary targets and growth in the nation's money supply. Money supply is one of these targets, although other economic indicators are also closely watched, including total federal funds trading, net borrowed reserves and total reserves, plus total debt in the economy.
